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New Jersey Conventional Loans

What Are New Jersey Conventional Loans?

New Jersey conventional loans are a great way to finance your dream home or investment property. The government doesn’t insure these loans, but they offer several benefits over other types of loans. New Jersey conventional loans offer competitive interest rates, low down payments, and flexible credit requirements. You can also use New Jersey conventional loans to buy a second home or investment property. New Jersey conventional loans are a great way to finance your dream home or investment property.

Types of Conventional Loans

Borrowers will encounter several types of conventional loans when shopping for the best rate. Prepare yourself for the options that bankers and brokers will offer you by knowing which kinds of conventional loans you want ahead of time. Some of the most common varieties of conventional loans include:

● Conforming — Meets the conventional loan requirements that Fannie Mae and Freddie Mac layout

● Non-conforming — Exceeds the maximum loan principal amount or other requirements

● Fixed-rate — Interest rate never changes; can be conforming or non-conforming

● Adjustable rate — Initial period of a fixed rate followed by annual adjustments

● Low down payment — Less capital requirement; higher interest rates

The Hidden Benefits of Conventional Loans

As one of the most reliable financial instruments lending institutions offer, conventional home loans offer several perks. Find some of the benefits of conventional loans below.

Low Down Payments

While conforming conventional loans often require high down payments, some non-conforming variants allow for low down payments. For example, some borrowers have secured loans with down payments as low as 5%, 3%, and even 0%. However, qualifications for these types of loans will vary, and you may have difficulty finding a zero-down-payment loan outside of credit unions.

Purchase of Second Homes and Investment Properties

Unlike VA and FHA loans, conventional loans allow you to buy second homes and investment properties. In addition, whereas other types of home loans remain available to first-time homebuyers only, conventional loans allow great flexibility, making them perfect for a vacation home or real estate investment.

Greater Flexibility

The rules governing VA, FHA, and other types of loans prove restrictive. As a result, most applicants must agree to rigid terms or explore other avenues. With conventional loans, borrowers can often alter the term of the mortgage, which can improve the interest rate, reduce closing costs, lessen the required down payment, or lower the monthly payment. This flexibility can sometimes make conventional loans more appealing than other types.

How to Get the Best Rates on a Conventional Loan

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The easiest way to get the best mortgage rates on a conventional loan is to cultivate a high credit score. Other methods include:

  • Offering a large down payment.
  • Putting up valuable collateral.
  • Maintaining significant deposits with your lender.

Make sure you ask your lender what else you can do to save money on your interest rate.

Cornerstone Capital Financial Service: Conventional Home Loans

Choose from several types of conventional loans at Cornerstone Capital Financial Service. Our finance professionals will help you tailor the perfect home loan for your new property. We pride ourselves on exploring all available options to find the best loans for all of our clients. Call us today at (201) 265-4545 for New Jersey conventional loans.

If you are looking to apply for a Conventional Loan in New Jersey, CONTACT US TODAY!